Market Notebook

PRICE ACTION:
Equity prices, as measured by ticker SPY, closed higher on the week, and bond prices, as measured by ticker BND, closed lower on the week.

TECHNICAL ANALYSIS:
SPY’s price action on Thursday and Friday was solidly positive, pushing the price well above technical resistance areas. This suggests SPY is established in an upward trend.

BND’s price action appeared to consolidate during the week. Be on the lookout for sideways price action to continue.

SENTIMENT:
Market participants have digested significant negative data over the past few weeks. A slowing negative data stream could easily contribute to equity optimism over the short term.

ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook remain mixed but are skewing towards recession. Real economic activity will likely slow over the next few months as the Federal Reserve works to mute inflationary pressures.

Jobless claims are to be watched as a key indicator of recession. Thus far, jobless claims are not suggesting a recession is imminent.

NEXT WEEK:
The technical picture for equities and bonds appears to allow for opportunistic purchases or rebalancing.

All the best during the week ahead!

Disclaimer: Nothing in this discussion should be considered investment advice. The content of this discussion is strictly my personal opinion and subject to change at a moment’s notice. Investment advice can only be provided to you by your investment professional and not by a general market discussion such as this one. If you wish to speak with an investment advisor, contact us. We can probably help.